EE sees quarterly revenue drop but strong 4G subs growth

UK operator EE has posted a year on year drop in revenue for the first quarter of 2014 but said that it saw the highest number of 4G subscribers join during the period. Revenue fell 3.6 per cent year on year to reach £1.55bn but the operator did not divulge the size of its quarterly profit or loss.

The operator’s 4G customer base reached 2.9 million, an increase of 889,000 subscribers during the quarter. EE said that over 5,000 medium and large companies are now using its 4G services.

It also said that 50 per cent of new and renewing subscribers to its Orange UK and T-Mobile UK brands opted to sign up for 4G services during the quarter and that it is on track to reach six million 4G subscribers by the end of the year.

The firm saw mobile ARPU increase by 2.2 per cent year on year and revenue from data services grew 47 per cent year on year. The operator added that the impact of regulation had a detrimental effect on its figure. Revenue from its fixed line business also grew 12.5 per cent year on year.

EE also reported that its LTE network now covers 72 per cent of the UK population, or 46 million people, and that it is offering its double speed 4G service to 20 cities; a quarter of the population.

“We signed up nearly 900,000 4G customers in a single quarter, with over one in four new customers opting for EE’s exclusive double speed 4GEE Extra plans,” said Neal Milsom, chief financial officer at EE. “In line with our vision to provide the best network and best service, we’re also further improving customer service across all channels to support our long term growth.”

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